Credit Acceptance Reaches Resolution With State Attorneys General

Credit Acceptance settles with New York and 40 other attorneys general, absorbing pre-accrued costs while ending long-running litigation and investigations.

Rhea-AI Summary

Credit Acceptance (CACC) announced on Sept. 17, 2026 that it has entered or will enter into consent judgments with the New York Attorney General and 40 other state attorneys general, resolving multistate litigation and investigations.

The resolution ends the 2023 lawsuit in the Southern District of New York and a multistate investigation begun in 2020, without any admission of fault or wrongdoing by the company. Credit Acceptance will pay $60 million into a consumer relief fund, pay $15.5 million to participating attorneys general for their investigation, and grant debt relief by waiving outstanding balances for certain customers. These monetary obligations will not require additional charges beyond amounts already accrued. The consent judgments require enhanced consumer disclosures, affordability protections, and dealer oversight, which the company states do not materially change its business model.

Positive

• Multistate litigation and 2020 investigation fully resolved via consent judgments
• Settlement reached with no admission of fault or wrongdoing by the company
• Cash settlement of $75.5 million will not require charges beyond amounts already accrued
• Operational requirements described as not fundamentally altering the existing business model

Negative

• Company to pay $60 million to a consumer relief fund
• Company to pay $15.5 million to participating attorneys general for their investigation
• Debt relief via waiver of outstanding balances for certain customers adds further economic cost
• Enhanced disclosure, affordability, and dealer oversight requirements may increase compliance burden

Key Figures

Consumer relief fund: $60 million Attorneys general payment: $15.5 million Participating attorneys general: 40 other attorneys general

Consumer relief fund

$60 million

Settlement payment

Attorneys general payment

$15.5 million

Investigation-related settlement payment

Participating attorneys general

40 other attorneys general

In addition to the New York Attorney General

Key Terms

consent judgments

1 terms

consent judgments regulatory

"entered or will enter into consent judgments with the Office of the New York Attorney General"

A consent judgment is a court-issued order that settles a legal dispute when a defendant agrees to the judge’s terms without admitting wrongdoing; it can include fines, injunctions, or required corrective actions. Think of it like signing a formal agreement to resolve a problem under a judge’s authority rather than fighting the case at trial. For investors, consent judgments matter because they create enforceable obligations and potential liabilities that can affect a company’s finances, operations, compliance record, and reputation.

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Settlement resolves longstanding litigation, clarifies regulatory expectations, and does not require material changes to the Company’s operations

Southfield, Michigan, Sept. 17, 2026 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today that it has entered or will enter into consent judgments with the Office of the New York Attorney General and 40 other attorneys general.¹ The resolution ends the litigation filed by the New York Attorney General in the United States District Court for the Southern District of New York in 2023, resolves the multistate investigation initiated in 2020, and was reached without any admission of fault or wrongdoing by the Company. Credit Acceptance is pleased that the resolution provides greater clarity to industry participants regarding regulatory expectations and allows the management team to focus on serving customers, supporting dealer partners and executing the Company’s long-term strategy.

Under the consent judgments, the Company will pay $60 million to a consumer relief fund, pay $15.5 million to the participating attorneys general for their investigation, and provide debt relief in the form of a waiver of all outstanding balances to certain customers. The participating attorneys general will administer the consumer relief fund. The monetary components of the resolution will not require the Company to record additional charges beyond amounts previously accrued and disclosed in the Company’s financial statements.

Under the consent judgments, the Company will preserve and supplement our existing controls through consumer-facing disclosures relating to vehicle pricing and ancillary products; affordability-related protections; and dealer oversight requirements. The Company believes these requirements are broadly consistent with our focus on customers and our mission of changing lives, as well as the regulatory expectations in the automotive finance industry and do not fundamentally alter the Company’s business model.

“This resolution provides certainty for our business, our dealer partners and the customers we serve. We believe the provisions we agreed to are constructive, customer-focused and consistent with the direction of regulatory expectations in our industry,” said Vinayak Hegde, Chief Executive Officer of Credit Acceptance. “Importantly, the resolution allows us to keep our full attention on helping consumers who may have limited financing options obtain access to reliable transportation and the opportunity to improve their financial lives over time.”

Credit Acceptance was founded on the belief that credit history should not limit access to reliable transportation. This belief has guided the Company’s approach to serving more than five million customers with limited or no financing alternatives. The Company remains committed to making vehicle financing and the opportunity for financial progress more accessible to consumers who may have limited alternatives.

For media inquiries, contact media@creditacceptance.com. For investor inquiries, contact ir@creditacceptance.com. Consumers may visit our website at www.creditacceptance.com/settlement for additional information.

^{1 Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, and Wisconsin.}

Description of Credit Acceptance Corporation

We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing. Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com.

Forward-Looking Statements

We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. Statements in this report that are not historical facts, such as those using terms like “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,” “estimate,” “intend,” “plan,” “target,” or similar expressions, and those regarding our future results, plans, and objectives, are “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this report. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on February 13, 2026, and other risk factors discussed or listed from time to time in our reports filed with the SEC. We do not undertake, and expressly disclaim any obligation, to update or alter our statements, whether as a result of new information or future events or otherwise, except as required by applicable law.

Investor Relations: Jay Brinkley
Senior Vice President & Treasurer
(248) 353-2700 Ext. 6739
IR@creditacceptance.com

Media Inquiries: media@creditacceptance.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What legal matters are resolved by Credit Acceptance’s consent judgments?

The consent judgments resolve the litigation filed by the New York Attorney General in the U.S. District Court for the Southern District of New York in 2023 and conclude the multistate investigation that began in 2020 involving New York and 40 other attorneys general.

How will the consumer relief fund and related payments be used and administered?

Credit Acceptance will pay $60 million into a consumer relief fund and $15.5 million to the participating attorneys general for their investigation. The consumer relief fund will be administered by the participating state attorneys general.

What debt relief is Credit Acceptance providing under the settlement?

The company will provide debt relief by waiving all outstanding balances owed by certain customers, in accordance with the consent judgments.

Do the settlement terms change Credit Acceptance’s operations?

The consent judgments require Credit Acceptance to preserve and supplement its existing controls through consumer-facing disclosures on vehicle pricing and ancillary products, affordability-related protections, and dealer oversight requirements. The company states these obligations are broadly consistent with its current practices and do not fundamentally alter its business model.

Where can consumers find more information about the settlement with Credit Acceptance?

Consumers can visit www.creditacceptance.com/settlement for additional information about the resolution.